Published: April 2021 | Report Code: AT12175 | Available Format: PDF | Pages: 142
The global automotive over-the-air (OTA) updates market was valued at $2,422.6 million in 2020, which is expected to grow at a CAGR of 19.5% during the forecast period 2021–2030 due to the increasing number of connected cars and electric vehicles (EVs). With the rapid growth in the number of connected cars across the globe and the rising software dependence of such vehicles, the need for OTA updates is surging significantly. As a result, original equipment manufacturers (OEMs) are investing in OTA upgradation technologies to make it easier for vehicle owners to update their vehicles’ software.
The emergence of the COVID-19 pandemic has significantly slowed down the automotive industry growth rate for the time being. With nationwide lockdowns being implemented in most of the COVID-19-affected countries, the automotive industry witnessed a mammoth decline in the vehicle demand, along with operational hindrances. In addition, the effects of the pandemic such as a decline in the production and sales of advanced connected vehicles negatively impacted the market for automotive OTA updates.
The software category held the larger revenue share in the automotive over-the-air updates market in 2020, on the basis of type. The OTA software update technology is a more-efficient than the conventional way for OEMs to upgrade the software and fix bugs. The key factor contributing to the market dominance of this category is easy connectivity between embedded systems and connected devices, which provides critical information, such as the location of fuel and charging stations and battery and charging status, in addition to facilitating the remote diagnosis of all types of connected vehicles.
During the forecast period, electric category in the automotive OTA updates market is expected to witness the faster growth, on the basis of propulsion. This would mainly be due to the increasing government support, in the form of incentives and grants, for the adoption of EVs, and stringent emission regulations. Moreover, the majorly of EVs are equipped with advanced connected systems for efficient operations and high levels of safety and security. Thus, these vehicles require OTA updates regularly, for smooth functioning.
Globally, North America held the largest share in the automotive over-the-air updates market in 2020. This leading position is majorly attributed to the increasing adoption of connected vehicles in the region. The demand for vehicle networking, navigation, communication, and entertainment features has increased immensely with the growing compatibility of mobile devices with these vehicles. Additionally, OEMs and technology providers in the region are consistently investing substantial sums in the creation of robust technologies, which are attracting vehicle customers. For instance, Tesla Inc. provides a module for troubleshooting and regularly receiving OTA software updates that add new features and enhance the existing ones over Wi-Fi.
The increasing adoption of the internet of things (IoT) technology is encouraging major automobile manufacturers to shift their focus to connected vehicles and either launch new variants or integrate advanced connectivity features in the existing models. This is a response to the increasing demand for state-of-the-art infotainment, telematics, and navigation systems by people. These systems rely on the software installed on the vehicle’s embedded hardware, which requires regular updates for smooth functioning. Thus, the rising incorporation of smart, connected technologies is a major trend being observed in the automotive over-the-air updates market.
The increasing rate of automotive digitalization implies that vehicles need regular software updates, including cybersecurity updates, to keep up with the latest advancements in connectivity technologies. Instead of repeatedly recalling the sold vehicles to a garage, it is much faster, as well as economical, to install these updates wirelessly or OTA. Moreover, OTA updates facilitate an IoT-enabled environment, by enhancing the functionality, making it easier to introduce new features, and protecting the devices against hacking, data breaches, and other types of cyberattacks. Such added benefits of OTA updates act as a major driver for the market.
The strict norms related to vehicle and passenger safety are expected to drive the automotive OTA updates market around the world. Vehicle safety has always been a prime concern for automotive manufacturers around the world. With the introduction of newer safety regulations and vehicle monitoring standards, it has become imperative for the manufacturers to make their offerings adaptable to the prevailing vehicle standards. Moreover, with the increasing sophistication in the automotive technology and the improving degree of programmability, automakers are rapidly focusing on upgrading their vehicles, to ensure compliance with the revised norms and regulations.
|Base Year (2020) Market Size||$2,422.6 Million|
|Market Size Forecast in 2030||$13,859.5 Million|
|Forecast Period CAGR||19.5%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Analysis, Companies’ Strategic Developments, Impact of COVID-19, Company Profiling|
|Market Size by Segments||By Type, By Propulsion, By Vehicle Type, By Application, By Region|
|Market Size of Geographies||U.S., Canada, Germany, U.K., France, Italy, Spain, China, Japan, India, South Korea, Brazil, Mexico, Argentina, Saudi Arabia, South Africa, U.A.E.|
|Secondary Sources and References (Partial List)||Association for the Advancement of Artificial Intelligence (AAAI), Bureau of Transportation Statistics (BTS), Chinese Association for Artificial Intelligence (CAAI), Connected Vehicle Trade Association (CVTA), European Association for Artificial Intelligence (EurAI), European Automobile Manufacturers Association (ACEA), International Council on Clean Transportation (ICCT)|
In recent years, major players in the market for automotive OTA updates have launched new software and updated services to gain competitive advantage over their competitors:
The automotive over-the-air updates market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2030.
Based on Type
Based on Propulsion
Based on Vehicle Type
Based on Application
The market for automotive OTA updates is expected to witness a CAGR of 19.5% during 2021–2030.
The TCU category holds the largest share in the automotive OTA updates industry, based on application.
APAC is the most-lucrative region for companies in the market for automotive OTA updates.
Key automotive OTA updates industry drivers include the government norms of passenger and vehicle safety, automotive software update process simplification, and increasing connected vehicle demand.
Players in the market for automotive OTA updates are engaging in partnerships and offering improved software and update solutions.
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